Is the Dryject Non-Compliance Fee considered interest?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ll pay any and all of Our expenses in collecting overdue payments from You, including attorneys' fees and the fees of any collection agencies hired by Us. The foregoing shall be in addition to any other remedy We may possess, as permitted by law. You acknowledge that this Subsection shall not constitute agreement by Us to accept such payments after they are due, or a commitment by Us to extend credit to, or otherwise fin
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the Non-Compliance Fee is not considered interest. Dryject may charge a Non-Compliance Fee of $100.00 per violation of any term or condition of the agreement. This fee is payable upon receipt of notice.
The purpose of the Non-Compliance Fee is to reimburse Dryject for expenses and compensate for inconvenience, rather than to serve as an interest charge. Dryject retains the right to change or eliminate this fee.
Prospective franchisees should note that while this specific fee is not classified as interest, Dryject does charge interest on overdue payments. If a franchisee fails to pay fees when due, interest is payable from the date the payment was due at a rate of 18% per year, or the maximum contract rate of interest permitted by governing law, whichever is less. This distinction is important for understanding the different types of financial obligations a franchisee may incur and how they are treated under the franchise agreement.